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time at an hourly rate of $180 through December 31, 1996, and
$190 beginning on January 1, 1997. Respondent objects to
Beeler's rate as exceeding the statutory maximum.
Section 7430(c) defines reasonable litigation and
administrative costs in part as "reasonable fees paid or incurred
for the services of attorneys". Section 7430(c)(1)(B)(iii)
limits the hourly rate for attorney's fees to $110, with
allowances for increase in the cost of living6 and other special
factors.
Beeler attempts to establish certain special factors in
order to justify billing at an hourly rate exceeding the
statutory cap. He lists his experience as a tax attorney, a tax
law professor, and an author of tax articles. In addition,
Beeler claims that his hourly rate is equal to or lower than the
prevailing local rates charged by tax attorneys with comparable
experience and that petitioner could not have obtained a
similarly qualified local tax attorney at a lower rate.
6 The cost of living increase provided in sec. 7430(c)(1)
does not help petitioner here. Sec. 7430(c)(1) provides that
attorney's fees for 1997 are eligible for the increase as
determined under that section and sec. 1(f)(3). See also Rev.
Proc. 96-59, 1996-2 C.B. 392. Under the preceding determination,
Beeler's allowable fee for services rendered in 1997 is $113.
Sec. 7430(c)(1) also provides, however, that if after the
increase the fee is not a multiple of $10, it shall be rounded to
the nearest multiple of $10. Therefore, Beeler's allowable fee
for 1997 is rounded down and remains at $110.
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